Second Mortgage Refinancing

With So Many People Refinancing Their Mortgages And With All The Changes In The Market Many Homeowners Want To Know Can They Get Second Mortgage Refinancing?

There are tons of people that have first and second mortgages and are want first and second mortgage refinancing. There are lots of reasons why people will get second mortgage refinancing on their homes. There are still banks that are willing to do second mortgage refinancing on your home, it is just harder to obtain that it was before.

With second mortgage refinancing many homeowners are struggling because of the loan to value of their homes. Their first mortgage is able to be refinanced because it is a conforming loan. A conforming loan is a loan that is $417,000 or less. The reason that many home owner have a first and second loan is so that they have two conforming loans and do not have to have jumbo loan pricing. So now that these homeowners are looking for second mortgage refinancing they are over the conforming amount and they in many cases have to roll both of these loans into one loan. That makes the loan now a jumbo loan and makes the guidelines much stricter and more expensive.

If you have a good mortgage broker in many cases they will be able to know right away if you will be able to roll your first and second mortgage into one or if you will need second mortgage refinancing.

In many cases with second mortgage refinancing you will have two different banks that do your different loans. This means that you will have to send your monthly payments to two different banks. Also if you want to refinance your first mortgage you will have to get a subordination clause. This clause essentially will allow your new lender to take first lien position on the loan.

If you think that you will need second refinance home mortgages and you live in an expensive area there may be a solution for you. In many expensive areas they will expand the conforming loan amount. This will allow you to go over $417,000 on your first mortgage and still get premium conforming pricing on your loan. This alternative is only exclusive to certain areas in the country where affordable housing is still really expensive.

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